September 08, 2022 12:30 ET | Source: VRANKEN-POMMERY MONOPOLE VRANKEN-POMMERY MONOPOLE
Growth in results on a like-for-like basis
The Board of Directors of Vranken-Pommery Monopole met on March 31, 2022 under the chairmanship of Mr. Paul-François Vranken, and in the presence of the Statutory Auditors, to approve the Group's financial statements for the half year 2022.
The limited review procedures on the half-yearly financial statements have been performed by the statutory auditors. Their limited review report is being issued.
(**) restatement in H1 2021 of €1.2 million in reversals of provisions related to the transfer of VPV personnel to VPHV, a wine service company created in 2021 and consolidated by the equity method at 49%.
Confirmation of the commercial dynamics of Vranken-Pommery Monopole
In a tense economic and geopolitical context, the Group posted a very good performance. Consolidated revenues rose by 20.2% to €112.2 million, confirming the appeal of champagne, premium and high-end wines to consumers both in France and internationally (representing 64% of sales).
All markets contributed to the increase in revenues:
Growth in half-year results on a like-for-like basis
The increase in results for the first half of the year was negatively impacted by the effort made on advertising campaigns and other expenses for the launch of the Multi-Millésimes vintage of Château La Gordonne for €0.5 million (vertical blending of several vintages which guarantees the constant and qualitative taste of Château La Gordonne).
In addition, in the first half of 2021, the Group transferred the staff of Vranken-Pommery Vignobles to the company VPHV, which was created in 2021 and is accounted for by the equity method at 49%. This transfer resulted in a reversal of the provision for pension commitments of €1.2 million in 2021.
Excluding the impact of this transfer and on a like-for-like basis, current operating income in 2022 is up 6% to €5.9 million, compared with €5.6 million in 2021, and operating income is up 20.7% to €6.5 million compared with €5.4 million in 2021.
Net income improved by 41.4% to € -1.7 million, on a like-for-like basis.
On a like-for-like basis, shareholders' equity amounted to €378.6 million, an increase of €7.4 million. At the same time, and in accordance with its commitments, the Group continued to reduce its debt and further reduced its net financial debt by €13.3 million to €702.7 million (€683.4 million excluding IFRS 16).
On June 19, 2022, Vranken-Pommery Monopole redeemed the 3-year €50 million bond issued in 2019 and offering a 3% coupon. In July, the €25 million 6-year Euro PP issued in 2016 and offering a coupon of 3.40% was also redeemed.
Société à Mission (B-Corp) : « La Vérité du Terroir »
The first actions launched by the Mission Committee are underway. The inventory of all the actions undertaken by the Group in favor of sustainable development is being finalized, and the independent third-party body responsible for monitoring the Committee's action will be appointed at its next meeting.
Operations to protect water resources have been given a particular boost this year with the summer drought that hit the vineyards of Champagne, Provence and the Camargue. These exceptional climatic conditions reinforce our convictions on the necessity of preserving this vital resource so that the "Truth of the Land" can continue to express itself for future generations.
In Champagne, quantity and quality are on the agenda for the harvest and the yield in the appellation set at 12,000 kg/ha will be reached. In addition, interprofessional decisions have been taken in order to be able to reconstitute the quality reserves after the years 2020 and 2021 marked by low harvests.
In Provence, the harvest of Château La Gordonne is excellent with an agronomic yield covering the maximum yield in AOP Côtes de Provence of 55 hl/ha.
In Camargue, after a very poor year of 53 hl/ha in 2021, the yield for the 2022 harvest is 65 hl/ha, the first step in a progression that should lead to normative yields of 70 hl/ha in the future.
In the Douro Valley, the harvest has only just begun.
For 2022, the Group maintains its revenue growth forecast of +5%.
This forecast is based on:
Publication of 2021 annual turnover: 26 January 2023 after stock exchange closing
About Vranken-Pommery Monopole Vranken-Pommery Monopole manages 2,600 hectares of land, owned outright or under lease and spread over four vineyards in Champagne, Provence, Camargue and Douro. The group’s wine-making activities range from production to marketing, with a strong commitment to the promotion of terroirs, sustainable wine-growing and environmental conservation. Its brand portfolio includes:
Vranken-Pommery Monopole is a company listed on NYSE Euronext Paris and Brussels. (code "VRAP" (Paris), code "VRAB" (Brussels); ISIN code: FR0000062796).